Interim Report January 1 – March 31, 2006

- Industrivärden’s net asset value was SEK 58,692 M on May 4, 2006, an increase of SEK 10,440 M, or 22%, for the year to date. Net asset value on March 31, 2006, was SEK 55,570 M (36,557). - Net asset value per share on May 4, 2006, was SEK 304, an increase of SEK 54 per share since the start of the year. Net asset value per share on March 31, 2006, was SEK 288 (189). Average annual growth in net asset value over the last ten-year period, including reinvested dividends, was 19%. Earnings per share for the first three months of 2006 were SEK 37.90 (0.01). - During the first four months of the year, the total return for Industrivärden’s Class A stock was 17%, and the total return for the Class C stock was 20%, compared with 15% for the return index. The average annual total return over the last ten-year period was 6 percentage points higher than the return index. - Additional shares were purchased in Höganäs in March, bringing Industrivärden’s total holding to 10.1% of the capital and 8.1% of the votes in the company. CEO’s Message As we near the half year mark, the rate of growth remains favorable in large parts of the world economy. Global growth forecasts have been upgraded, and indications are currently strong that 2006 will be a good year, even if the ongoing adjustment of the previously record-low interest rates in several major economies may have a dampening effect in time. Following years of stagnation, the Japanese economy is showing favorable development. Europe – headed by Germany – has also had higher growth. Industrivärden’s portfolio companies showed a strong first quarter, and it is pleasing to once again note that our portfolio of industrially leading listed companies is maintaining a high class. However, rapid changes in the operating environment and fierce competition require continuous adaptation and improvements. For us as a long-term owner, this is a challenge as well as an opportunity. SSAB – with a 33% return on capital employed in a strong economy – is a prime example of a successful niche orientation. Through a concerted effort the company has established a leading position in ultra high-strength and quenched steel. With this strategy, SSAB has positioned itself as one of the most profitable steel companies in Europe. Against the backdrop of the strong performance of our portfolio companies, Industrivärden’s net asset value has risen by 22%, or SEK 54 per share, since the start of the year through May 4. Both our Class A and C shares have outperformed the market index. In March we bought additional shares in the company Höganäs, and our holding now amounts to slightly more than 10% of the capital. Höganäs has solid materials expertise in the production of metal powder–based industrial components. Key customers can be found in the automotive industry, among others. It’s our judgement that Höganäs has promising future potential in an exciting product area. Another interesting new investment was the purchase of slightly more than 5% of the shares in the Norwegian media technology company Tandberg Television. The company is a globally leading niche player primarily in the area of compression technology, which is needed for the transmission of multimedia data. The company’s equipment and software are used to digitalize TV data which is necessary in order to make use of the new digital TV technology. The quarterly result of our short-term trading amounted to SEK 67 M (37), compared with our unchanged management costs of SEK 20 M. Anders Nyrén President and CEO